The Kenya Union of Commercial Food and Allied Workers have vowed to take legal action against Game Stores, a South AFrican retail store that exited the Kenyan market months ago.
The Game Stores, run by South African retail giant Massmart, had a conflict with its workers over redundancy pay before the retailer’s exit from the Kenyan market.
The employees are demanding that they be paid goodwill and two months’ salary instead of notice for those who have worked at the retailer for less than five years.
Massmart has declined the compensation expectations, claiming that due to financial constraints, it is unable to meet the union’s demands.
Read: Workers’ Efforts To Stop Game Stores’ Mass Firing Fail
For employees who have been with the organisation for less than five years, the retailer advises that they should accept severance pay of 15 days for every year worked, a drop in goodwill demand, and a month’s income instead of notice.
“Given the precarious financial position of the company currently, the company is of the view that the proposals are not reasonable,” Massmart said in a letter to the union seen by the Business Daily.
“You and the rest of the associates are aware the company has never made a profit in Kenya since it commenced trading and it has suffered trading losses year after year,” added the South African retail giant.
After competitor local supermarkets rejected proposals to buy the branches, Game Stores will shut down its three locations in Kenya on December 25. This will add to the difficulties facing the region’s supermarket industry.
